Shanghai shares close -- 3 (CSRC moves to strengthen powers of investigation)

Haitong Securities analyst Chen Jiuhong said there is no shortage of funds available for investment in B-shares, but added that sentiment will be the key factor determining whether B-shares can extend their recent sharp gains.	    "Investors seem to have become increasingly cautious after prices rose to a new level," she said.	    Yu Xiaoli, another analyst in Haitong Securities, the correction in B-share prices follows broad gains which drove up the prices of all stocks, regardless of their quality.	    In future, B-share gains may focus on better quality companies with more reliable earnings performance, she said.	    Yu added that sentiment may have become more cautious following reports citing China Securities Regulatory Commission secretary general Tu Guangshao as saying that the CSRC may cooperate with public security departments to establish bodies responsible for investigating criminal activities in the stock markets.	    Such a move would increase the commission's power to act against share price manipulation carried out by securities institutions, she said.	    China Eastern Airlines rose 0.01 yuan to 5.82 on 5.6 mln shares.	    The company today told AFX-ASIA its business in the two months to February was "not good at all", adding that the company saw a reduction in passenger volume following the imposition of a 15-pct surcharge on air ticket prices from the end of last year.	    The Nanfang Weekend recently reported that China's three largest airlines, of which China Eastern Airlines is one, made large losses in the two months, with one incurring a loss of up to 500 mln yuan.	    Hainan Airlines gained 0.3 yuan to 8.93 on 12.4 mln shares.	    Sichuan Changhong shed 0.44 yuan to 12.65 on 22.2 mln shares, while Baoshan Iron & Steel dropped 0.12 yuan to 5.68 on 36.4 mln shares and Shanghai Automotive declined 0.43 yuan to 12.81 on 8.8 mln shares.	    Among loss-making companies with "special treatment" status, Shanghai Steel Tube shed 0.74 yuan to 20.14 on 262,000 shares, while China Textile Machinery gained 0.07 yuan to 12.45 on 445,000 shares and Ningbo Hualian rose 0.19 yuan to 10.82 on 1.5 mln shares.	    Among B-shares, Shanghai Chlor-Alkali dropped 0.05 usd to 0.543 on 55.7 mln shares, while Jinan Qingqi shed 0.028 usd to 0.411 on 57 mln shares and Shanghai Lujiazui fell 0.066 usd to 0.701 on 42.9 mln shares.	    Zhejiang Southeast Electric Power declined 0.05 usd to 0.719 on 59.6 mln shares.

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